Texas 2023 - 88th Regular

Texas Senate Bill SB2419 Compare Versions

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1	1	88R9026 DRS-F
2	2	By: Johnson S.B. No. 2419
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an incentive program to promote beverage container
8	8	recycling; imposing a fee.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 5, Health and Safety Code, is
11	11	amended by adding Chapter 375 to read as follows:
12	12	CHAPTER 375. BEVERAGE CONTAINER RECYCLING REFUND PROGRAM
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 375.001. DEFINITIONS. In this chapter:
15	15	(1) "Beverage" means an alcoholic, nonalcoholic,
16	16	carbonated, or noncarbonated drink prepared in liquid,
17	17	ready-to-drink form and intended for human consumption.
18	18	(2) "Beverage container" means a glass, metal, or
19	19	plastic vessel that is hermetically sealed or capped and that
20	20	contains a beverage at the time it is sold or offered for sale. The
21	21	term does not include a container that:
22	22	(A) has a fluid capacity of more than one gallon;
23	23	(B) contains milk or another dairy product;
24	24	(C) contains infant formula, including any
25	25	liquid food sold as an alternative for human milk for the feeding of
26	26	infants; or
27	27	(D) contains medical food, including:
28	28	(i) a liquid food that is formulated to be
29	29	consumed or administered under the supervision of a physician and
30	30	that is intended for specific dietary management of diseases or
31	31	health conditions for which distinctive nutritional requirements,
32	32	based on recognized scientific principles, are established by
33	33	medical evaluation; and
34	34	(ii) a product that meets the definition of
35	35	a medical food under Section 5(b) of the Orphan Drug Act (21 U.S.C.
36	36	Section 360ee(b)).
37	37	(3) "Commission" means the Texas Commission on
38	38	Environmental Quality.
39	39	(4) "Consortium" means the Texas Beverage Container
40	40	Recycling Consortium established under this chapter.
41	41	(5) "Consumer" means a person who purchases at retail
42	42	a beverage in a beverage container. The term includes a lodging,
43	43	eating, or drinking establishment if beverages are generally
44	44	consumed on the establishment's premises. The term does not
45	45	include a person who purchases a beverage from a lodging, eating, or
46	46	drinking establishment for consumption on the establishment's
47	47	premises.
48	48	(6) "Dealer" means a person in this state that sells to
49	49	a consumer a sealed beverage in a beverage container.
50	50	(7) "Distributor" means a person that sells beverages
51	51	in beverage containers to a dealer in this state. The term includes
52	52	a manufacturer or importer and a dealer that self-distributes its
53	53	own brand.
54	54	(8) "Manufacturer" means a person that fills beverage
55	55	containers for sale to a distributor or dealer.
56	56	(9) "Redemption center" means a manned or unmanned
57	57	operation approved by the consortium under this chapter that
58	58	redeems returned empty beverage containers by collecting beverage
59	59	containers from persons who deliver to the operation beverage
60	60	containers and issuing to a person delivering beverage containers a
61	61	refund for each with a value not less than the beverage container's
62	62	refund value.
63	63	(10) "Refund" means a payment by a redemption center
64	64	under Section 375.101 to a person who presents a beverage container
65	65	at the redemption center.
66	66	(11) "Refund program" means the beverage container
67	67	recycling program established under this chapter.
68	68	Sec. 375.002. RULES. The comptroller may adopt rules to
69	69	administer this chapter. The comptroller shall consult the
70	70	consortium, the advisory committee established under Section
71	71	375.003, and the commission in developing for proposal rules to
72	72	administer this chapter.
73	73	Sec. 375.003. ADVISORY COMMITTEE. (a) The comptroller
74	74	shall appoint an advisory committee to advise the comptroller and
75	75	the consortium on the implementation of this chapter. In
76	76	considering persons to appoint to the advisory committee, the
77	77	comptroller shall consult the consortium and the commission.
78	78	(b) The advisory committee is composed of the following nine
79	79	members:
80	80	(1) one distributor of alcoholic beverages;
81	81	(2) one distributor of nonalcoholic beverages;
82	82	(3) one recycler;
83	83	(4) one beverage retailer;
84	84	(5) one member representing the waste industry;
85	85	(6) one owner or operator of a redemption center;
86	86	(7) one member representing a container processor or
87	87	remanufacturer;
88	88	(8) one representative of a municipality with a
89	89	population of less than 10,000; and
90	90	(9) one representative of a municipality with a
91	91	population of 10,000 or more.
92	92	(c) A member of the advisory committee serves at the will of
93	93	the comptroller.
94	94	Sec. 375.004. ANNUAL REPORT. Not later than November 1 of
95	95	each year, the consortium shall submit a report to the lieutenant
96	96	governor, the speaker of the house of representatives, the
97	97	comptroller, the commission, and the committee in each house of the
98	98	legislature that has primary jurisdiction over environmental
99	99	matters about the progress and success of the refund program. The
100	100	report must be submitted electronically in a format prescribed by
101	101	the officer or entity to which the report is transmitted.
102	102	SUBCHAPTER B. TEXAS BEVERAGE CONTAINER RECYCLING CONSORTIUM
103	103	Sec. 375.051. CONSORTIUM AND APPROVED PLAN REQUIRED;
104	104	NON-JOINING DISTRIBUTORS; MEMBERSHIP FEES. (a) Distributors shall
105	105	form, and a distributor shall participate in, the Texas Beverage
106	106	Container Recycling Consortium. The consortium must be a nonprofit
107	107	corporation under Chapter 22, Business Organizations Code, that is
108	108	formed for the purpose of creating and implementing a plan to meet
109	109	the requirements of this chapter. The consortium's organizational
110	110	and operational structure must be approved by the comptroller.
111	111	(b) The consortium shall develop a plan in accordance with
112	112	Section 375.052 and submit the plan to the comptroller for
113	113	approval. The comptroller's approval of the consortium's plan
114	114	submitted under this subsection constitutes the comptroller's
115	115	initial approval of the nonprofit corporation for purposes of
116	116	Subsection (a). The comptroller may approve the initial plan on a
117	117	provisional basis and require an amended plan to be submitted not
118	118	later than a date established by the comptroller.
119	119	(c) A distributor may not sell or supply beverages in
120	120	beverage containers in this state if the distributor has not joined
121	121	the consortium.
122	122	(d) The consortium may sue a distributor that has not joined
123	123	the consortium in an appropriate court to require compliance with
124	124	the duty to join the consortium and to enforce Subsection (c). The
125	125	consortium may recover court costs and attorney's fees if it
126	126	prevails in a suit brought under this subsection.
127	127	(e) The consortium shall assess and collect membership fees
128	128	from its members in accordance with Section 375.054.
129	129	Sec. 375.052. PLAN REQUIREMENTS. To be approved under this
130	130	subchapter, a plan must:
131	131	(1) be based on objective and measurable criteria to
132	132	the extent possible;
133	133	(2) include provisions sufficient to enable the
134	134	comptroller to determine:
135	135	(A) whether the consortium, distributors,
136	136	redemption centers, and other affected persons are in compliance
137	137	with the plan and this chapter; and
138	138	(B) whether the plan is cost-effective and
139	139	sufficiently convenient to the public;
140	140	(3) establish reasonable standards and guidelines to
141	141	ensure that redemption centers are efficient, cost-effective, and
142	142	convenient for the public;
143	143	(4) show how the consortium will encourage public
144	144	participation in the program and require distributor compliance
145	145	with this chapter;
146	146	(5) include a marketing plan to provide information
147	147	and educate consumers about the refund program;
148	148	(6) include requirements to ensure transparency and
149	149	adequate recordkeeping to facilitate audits of the refund program
150	150	by the comptroller or the consortium;
151	151	(7) include an operating budget for the refund
152	152	program;
153	153	(8) show how the consortium will ensure the solvency
154	154	of the recycling refund trust fund;
155	155	(9) provide for a system for payment of the deposit by
156	156	consumers at point of sale and transferring the deposit to the
157	157	recycling refund trust fund;
158	158	(10) provide for a system for monitoring the number of
159	159	beverages in beverage containers sold by distributors in or into
160	160	this state and the number of beverage containers returned to
161	161	redemption centers and curbside recycling programs;
162	162	(11) provide for a system to prevent fraudulent use of
163	163	the refund program through current statutes prohibiting fraud and
164	164	theft that includes cost-effective measures to ensure to the extent
165	165	possible that beverage containers purchased outside of this state
166	166	are not returned for refund under this chapter;
167	167	(12) describe how the consortium will administer the
168	168	recycling refund trust fund under Section 375.056;
169	169	(13) prescribe procedures and forms necessary to
170	170	implement the plan and this chapter;
171	171	(14) provide a link to a publicly accessible Internet
172	172	website developed and maintained by the consortium that provides
173	173	information about the program, including redemption center
174	174	locations;
175	175	(15) prescribe labeling standards for manufacturers
176	176	and distributors;
177	177	(16) include standards and procedures for payment by
178	178	the consortium to curbside collection programs for beverage
179	179	containers collected at curbside based on the number of containers
180	180	collected and the quality of those containers as compared to the
181	181	quality of containers collected at redemption centers;
182	182	(17) include standards for efficiently and
183	183	cost-effectively approving redemption centers operated by a local
184	184	government or private operator;
185	185	(18) include standards for making refund payments
186	186	based on the weight of returned beverage containers;
187	187	(19) include standards for material acceptance and
188	188	refusal by redemption centers;
189	189	(20) establish requirements and standards for
190	190	information necessary to compute a recycling rate for beverage
191	191	containers collected through redemption centers; and
192	192	(21) to the extent feasible, establish requirements
193	193	and standards for information necessary to compute a recycling rate
194	194	for beverage containers collected through curbside recycling
195	195	programs and other means.
196	196	Sec. 375.053. PLAN APPROVAL; APPLICABILITY OF APPROVED
197	197	PLAN. (a) Before approving the consortium's plan submitted under
198	198	Section 375.051(b), the comptroller:
199	199	(1) shall consult the advisory committee;
200	200	(2) shall publish notice and the text of the proposed
201	201	plan on the comptroller's Internet website;
202	202	(3) shall provide a reasonable period for and solicit
203	203	comments from the public, distributors, dealers, manufacturers,
204	204	and other interested persons, including local government entities
205	205	and other persons involved in collection efforts;
206	206	(4) may hold workshops or informal hearings on the
207	207	proposed plan; and
208	208	(5) may allow the consortium to amend the proposed
209	209	plan in response to comments from the comptroller or the public.
210	210	(b) The comptroller may approve the plan only if the
211	211	comptroller determines that the plan:
212	212	(1) complies with Section 375.052;
213	213	(2) is supported by the available evidence; and
214	214	(3) will accomplish the purposes of this chapter in a
215	215	manner that is feasible, well-founded, cost-effective, and
216	216	convenient to the public.
217	217	(c) Standards, procedures, guidelines, and requirements
218	218	established in a plan approved by the comptroller are binding, as
219	219	applicable, on:
220	220	(1) persons engaged in commerce involving beverage
221	221	containers in this state, to the extent allowed under federal law;
222	222	(2) persons and local government entities engaged in
223	223	collecting or sorting for recycling or other disposition used
224	224	beverage containers; and
225	225	(3) redemption centers.
226	226	(d) Plan amendments must be approved by the comptroller in
227	227	accordance with this section.
228	228	Sec. 375.054. CONSORTIUM FINANCES; FEES PAID BY CONSORTIUM
229	229	MEMBERS. (a) The consortium shall charge distributors a
230	230	membership fee. The fee must be set in an amount that is sufficient
231	231	to cover the cost to the consortium of implementing the plan and
232	232	administering this chapter, including the cost of:
233	233	(1) operating and maintaining, or providing for the
234	234	operation and maintenance of, redemption centers built or operated
235	235	under this chapter; and
236	236	(2) paying to the comptroller an amount equal to the
237	237	comptroller's costs and the commission's costs incurred in
238	238	administering this chapter, as directed by the comptroller.
239	239	(b) The consortium shall provide to the comptroller a
240	240	description of how the consortium computes and sets the membership
241	241	fee and the process by which the consortium collects the fee from
242	242	distributors.
243	243	(c) The amount of the membership fee to be paid by a
244	244	distributor must be:
245	245	(1) generally proportional to the relative number of
246	246	beverage containers that the distributor introduces into the stream
247	247	of commerce in this state; and
248	248	(2) based on a reasonable estimate and consideration
249	249	of the cost to the consortium of collecting and processing for
250	250	recycling or other disposal the distributor's beverage containers.
251	251	(d) The consortium shall add to the amount of the membership
252	252	fee to be paid by a distributor the consortium's best reasonable
253	253	estimate of the cost to the consortium of:
254	254	(1) collecting, processing, and disposing of beverage
255	255	containers the distributor introduces into the stream of commerce
256	256	in this state that are difficult to recycle or unsuitable for
257	257	recycling; and
258	258	(2) higher payments made to curbside collection
259	259	programs due to containers described by Subdivision (1).
260	260	(e) The consortium shall establish a date on which the
261	261	membership fee charged to a distributor under this section is due.
262	262	If a distributor is more than 180 days delinquent in payment of a
263	263	fee, the consortium may bring suit to recover the fee, court costs,
264	264	and reasonable attorney's fees.
265	265	Sec. 375.055. CERTAIN BEVERAGE DONATIONS. A manufacturer
266	266	or distributor that donates beverages shall pay to the consortium
267	267	the required deposit for the donated beverage containers in the
268	268	manner prescribed by the consortium.
269	269	Sec. 375.056. RECYCLING REFUND TRUST FUND. Deposits
270	270	collected under this chapter, including deposits collected under
271	271	Section 375.055, and membership fees collected from distributors
272	272	shall be deposited to the credit of a recycling refund trust fund
273	273	maintained by the consortium in a depository chosen by the
274	274	consortium. Except as provided by Section 375.152(b), money in the
275	275	trust fund may be allocated and expended only for:
276	276	(1) construction, operation, and maintenance of
277	277	redemption centers;
278	278	(2) operation of technology-based redemption centers,
279	279	including reverse vending machines and bag-drop receptacles, that
280	280	provide convenient cost-effective methods of paying refunds;
281	281	(3) leasing agreements and liability insurance on
282	282	redemption centers;
283	283	(4) appropriate payments to curbside recycling
284	284	programs for beverage containers that, based on reliable data
285	285	submitted to the consortium by a program, meet quality standards
286	286	determined by the consortium and are ultimately recycled;
287	287	(5) making refund payments to persons who return a
288	288	beverage container to a redemption center and receive a refund;
289	289	(6) reimbursing a local government entity or
290	290	independent entity operating a redemption center, as authorized by
291	291	the consortium, for refunds paid to persons returning beverage
292	292	containers;
293	293	(7) providing information to and educating consumers
294	294	about the refund program; and
295	295	(8) administering this chapter and reimbursing the
296	296	comptroller and the commission for costs incurred in administering
297	297	this chapter.
298	298	Sec. 375.057. COMPTROLLER OVERSIGHT; RESERVES. The
299	299	comptroller may:
300	300	(1) require the consortium to provide financial
301	301	information;
302	302	(2) conduct financial audits of the refund program;
303	303	and
304	304	(3) require the consortium to maintain reserves in an
305	305	amount determined by the comptroller in accordance with applicable
306	306	financial accounting standards.
307	307	Sec. 375.058. LABEL REQUIRED. (a) A person may not
308	308	distribute, sell, or offer for sale in this state a beverage in a
309	309	beverage container unless the beverage container meets labeling
310	310	standards established by the consortium in a plan approved by the
311	311	comptroller.
312	312	(b) A person may not sell at retail in this state a beverage
313	313	in a beverage container unless the person collects or provides for
314	314	the collection of the deposit on the beverage container in
315	315	accordance with Subchapter C and in a manner established by the
316	316	consortium in a plan approved by the comptroller.
317	317	SUBCHAPTER C. DEPOSITS AND REFUNDS FOR BEVERAGE CONTAINERS;
318	318	REDEMPTION CENTERS
319	319	Sec. 375.101. AMOUNT OF DEPOSIT AND REFUND FOR BEVERAGE
320	320	CONTAINERS. (a) The deposit on a beverage container is five cents.
321	321	(b) A person who returns a beverage container to a
322	322	redemption center is eligible to receive a refund of five cents for
323	323	the returned container.
324	324	Sec. 375.102. PROCEDURES. The consortium shall establish
325	325	efficient, convenient, and cost-effective procedures for
326	326	collection of the beverage container deposit and payment of the
327	327	deposit refunds.
328	328	Sec. 375.103. REDEMPTION CENTERS. (a) A person or local
329	329	governmental entity may not operate a redemption center without the
330	330	consortium's approval.
331	331	(b) A person or local governmental entity that operates a
332	332	redemption center must do so according to standards and guidelines
333	333	established by the consortium.
334	334	SUBCHAPTER D. RECYCLING TARGETS
335	335	Sec. 375.151. RECYCLING TARGETS FOR BEVERAGE CONTAINERS.
336	336	(a) The consortium shall implement a plan approved under this
337	337	chapter to meet the following recycling rates for beverage
338	338	containers sold or distributed in this state:
339	339	(1) not less than 35 percent, beginning January 1,
340	340	2027;
341	341	(2) not less than 50 percent, beginning January 1,
342	342	2031;
343	343	(3) not less than 65 percent, beginning January 1,
344	344	2035; and
345	345	(4) an average rate of not less than 65 percent during
346	346	each four-year period after January 1, 2035.
347	347	(b) The recycling rate is computed by dividing the number of
348	348	beverage containers that are recovered and recycled in a year by the
349	349	total number of beverage containers sold or distributed in this
350	350	state during that year.
351	351	(c) The number of beverage containers that are recovered and
352	352	recycled in a year is the sum of:
353	353	(1) the number of beverage containers that are
354	354	recovered at redemption centers and recycled in accordance with
355	355	this chapter; and
356	356	(2) the comptroller's estimated number of beverage
357	357	containers recovered and ultimately recycled as a result of
358	358	curbside collection, commercial contracts for collection and
359	359	recycling, and other recycling methods in this state not described
360	360	by Subdivision (1).
361	361	(d) The comptroller by rule may establish an alternative
362	362	method of computing the recycling rate as necessary for accuracy
363	363	and feasibility of implementation.
364	364	Sec. 375.152. FAILURE TO MEET RECYCLING TARGETS. (a) If
365	365	the consortium does not meet a year's recycling rate target
366	366	provided by Section 375.151, the consortium shall take additional
367	367	steps to raise the recycling rate, including making increases to:
368	368	(1) public outreach;
369	369	(2) the number of redemption centers; and
370	370	(3) the deposit and refund to 10 cents per beverage
371	371	container.
372	372	(b) If the consortium does not meet the recycling rate
373	373	target provided by Section 375.151 before the second anniversary of
374	374	the date the consortium was required to take additional steps under
375	375	Subsection (a), the comptroller may require the consortium to remit
376	376	to the state all or part of the money in the recycling refund trust
377	377	fund established under Section 375.056. The comptroller shall hold
378	378	money remitted under this subsection until the consortium or
379	379	another organization provides to the comptroller a corrective plan
380	380	to meet the recycling targets under this chapter.
381	381	(c) The comptroller shall consult with the advisory
382	382	committee before approving the corrective plan and releasing the
383	383	money remitted and held under Subsection (b) to the consortium or
384	384	other organization responsible for the approved corrective plan.
385	385	(d) The comptroller may audit the consortium for accuracy
386	386	and adherence to recycling targets under this chapter. The
387	387	consortium shall reimburse the comptroller for the cost incurred by
388	388	the comptroller in the audit process.
389	389	SECTION 2. (a) Not later than September 1, 2024, the
390	390	comptroller shall adopt rules for the implementation of Chapter
391	391	375, Health and Safety Code, as added by this Act. To facilitate
392	392	the approval of the structure and organization of the Texas
393	393	Beverage Container Recycling Consortium and the consortium's
394	394	initial plan, the comptroller may adopt the initial rules in the
395	395	manner provided by law for emergency rules.
396	396	(b) Except as otherwise provided by this Act, a dealer,
397	397	distributor, manufacturer, redemption center, or other person
398	398	subject to requirements imposed by the consortium plan adopted and
399	399	approved under Chapter 375, Health and Safety Code, as added by this
400	400	Act, shall comply with those requirements beginning January 1,
401	401	2025.
402	402	(c) The consortium shall submit the initial report required
403	403	by Section 375.004, Health and Safety Code, as added by this Act,
404	404	not later than November 1, 2025.
405	405	SECTION 3. (a) Except as provided by Subsections (b) and
406	406	(c) of this section, this Act takes effect September 1, 2023.
407	407	(b) Section 375.051(c), Health and Safety Code, as added by
408	408	this Act, takes effect October 1, 2025.
409	409	(c) Section 375.058, Health and Safety Code, as added by
410	410	this Act, takes effect January 1, 2025.